MEVade: An MEV-Resistant Blockchain Design

Abstract

Ethereum is a popular blockchain that facilitates the creation of decentralized applications (dApps) and enables digital transactions to be executed without the need for a central authority. However, as in traditional markets, information asymmetry and market inefficiencies are used to the detriment of ordinary users via trading strategies that exploit “Miner Extractable Value” (MEV). We propose two extensions of Ethereum, one for proof of work (PoW), and one for proof of stake (PoS), that eliminate most forms of MEV by randomizing the execution order of transactions and hiding the content of transactions until their inclusion in a block. We simulate attack scenarios for both settings and provide detailed security properties and proofs.